Renasant posts $3.8M in net income

TUPELO – Renasant Corp., the parent company of Renasant Bank, recorded second-quarter net income of nearly $3.8 million, or 17 cents per share.
That was a decline of nearly 11 percent compared to the $4.3 million, or 20 cents per share, for the second quarter of 2009. But it was a 5.2 percent increase versus the first quarter of this year, when Renasant posted net income of $3.6 million.
“During the first half of 2010, the markets within our footprint have continued to show positive trends,” said Renasant Chairman and CEO Robin McGraw. “Reflecting this, Toyota announced in June that it will resume completion of its manufacturing facility in north Mississippi, Huntsville saw an expansion within its aerospace and engineering industries and Nashville showed its resilience by quickly rebounding from a catastrophic flood. Even as the economy has not fully rebounded and many banks continue to struggle, during the second quarter of 2010, we opened two new full service banking locations, added strategic new hires and experienced a linked-quarter increase in our net income.”
Renasant’s total assets for the second quarter ending June 30 were about $3.6 billion, a 1.2 percent decline from a year ago. Total deposits dropped less than 1 percent, to $2.7 billion, from the first quarter, and 4.4 percent from Dec. 31.
Total loans were about $2.3 billion for the period, versus $2.5 billion a year ago.
Renasant said the decrease could be attributed to soft demand for loans and continued reduction in its construction and land development loan portfolio.
Net interest income in the second quarter fell from about $24.2 million last year to $23.7 million this year. Net interest margin for the period was 3.15 percent, compared to 3.27 percent in the first quarter and 3.04 percent in the second quarter of 2009.
Non-interest income grow from $12.8 million in the first quarter to $14.3 million in the second quarter. In 2008, second-quarter non-interest income was $15.4 million.
Non-interest expense grew and was $26.2 million in the second quarter. That compares to $27.13 million a year earlier, which included $1.75 million for an FDIC special deposit insurance assessment levied on all insured financial institutions.
Annualized net charge-offs as a percentage of average loans were 1.21 percent for the second quarter of 2010, up from 0.81 percent for the first quarter of 2010 and 0.93 percent for the second quarter of 2009.
The allowance for loan losses as a percentage of loans was 1.82 percent for the period, compared to 1.78 percent at the end of the first quarter and 1.67 percent at the end of last year. Renasant’s provision for loan losses of $7 million for the second quarter of 2010 compares to nearly $6.7 million for the first quarter of 2010 and $6.7 million for the second quarter of 2009.
“Even as the current economy and banking environment remains challenging, we believe our key markets are fundamentally sound and we are optimistic in our outlook for long-term success as we continue to position ourselves for opportunities to grow and enhance our franchise,” McGraw said.

NEMS Daily Journal